Gap between rich and poor fuelling dystopian future
This week the World Economic Forum’s Global Risks 2012 report warned that the financial crisis had fuelled resentment that could lay the seeds for rising levels of social unrest creating a “dystopian future”. The Pew Research Centre also released a study showing that Americans believe there is more conflict between rich and poor than between any other groups as and the gap between rich and poor grows to levels not seen since the 1920s. In the WEF risks report the top concern was income inequality. A recent ILO report on jobs found that 40% of nations surveyed showed a high risk of unrest.
Philip Jennings says, “These reports give a stark warning. If we do not close the gap between rich and poor we are sowing the seeds for our own downfall. There has to be fairer distribution of wealth and we must rebuild the social contract. The one percent cannot be allowed to own the combined wealth of the rest. We still have the financial resources but they have to be used to invest in a sustainable future. In the US business are sitting on a cash mountain of two trillion dollars which should be ploughed back into growing the economy and not just in share buy backs and financial speculation.”
The Global Risks 2012 report sets the framework for the WEF Annual Meeting in Davos later this month, which a number of global union leaders including Jennings will attend.
“The current levels of social unrest and economic chaos will continue to rise until world leaders act on jobs. The labour movement has been given a seat at the G20 table through the creation of the L20 but it is not enough that we are being listened to. My message for the participants at Davos is simple: time is running out and concerted action on job creation and bridging inequality is vital. Jobs have to be the global priority. We need to put the money back into people’s pockets to get the global economy working again. It’s time the 99% were given back what has been taken from them. In the global economy much more attention must be given to building a strong workforce. The financialisation of our economies has taken policy makers eye off the ball. We need to focus on creating millions of good quality jobs. It can be done.”
The theme for this year’s Davos is shaping new models – the great transformation. Philip will take part in the debate with Professor Roubini on Global Risks 2012: The Seeds of Dystopia on the opening day – Wednesday 25 January.